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A customer withdraws cash from a bank's ATM by following its on-screen prompts, with no words spoken or written between the parties. Under section 9 of the Indian Contract Act, 1872, how are the…

Question and options

A customer withdraws cash from a bank's ATM by following its on-screen prompts, with no words spoken or written between the parties. Under section 9 of the Indian Contract Act, 1872, how are the promises in this transaction classified?

  1. As contingent promises

  2. As implied promises

  3. As gratuitous promises

  4. As express promises

Answer and explanation

Correct answer: B - As implied promises

Section 9 provides that a promise made in words is express, and one made otherwise than in words is implied. Here the proposal and acceptance are made by conduct, by the machine's prompts and the customer's selections, so the promises are implied.

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